Been asked to personally pay the costs of liquidating your company?

A day doesn’t go by without me seeing at least one instance of a director being asked by an insolvency practitioner to personally pay the costs of putting their company into creditors’ voluntary, ie insolvent, liquidation.

If this is you, here’s a few questions for you…

What’s the insolvency practitioner said about your responsibility for paying those costs?

Were all of your options explained to you?

The answer to these questions is typically ‘not a lot’ and ‘I don’t know’, all that was said is ‘a CVL is quicker and more convenient way for you to close down the company’.

It might be, it might not be, but let me ask you another question, and this is the knub…

Can you do something better with your money – typically £2,500, £3,000 or £5,000 – like finance your new business, pay down personal debt, or even take a well earned break – than pay an insolvency practitioner’s fees?

Of course you can, because whatever way you look at it, spending your hard earned money – and I’m even seeing directors who go into personal debt on credit card to pay such fees, even after losing their sole source of income – on dealing with a historic issue isn’t great value for money.  Yes, there are low cost alternatives to a formal insolvency process.

So why is this happening?  Why am I being told that CVL is the best option?

Well, there are 2 reasons.

Firstly, insolvency is a incredibly complicated and grey legal area, it’s ever so easy for an insolvency practitioner to say ‘a CVL is the right route for you’ without that statement really being put to the test.

Secondly, many insolvency firms depend on selling directors what I would argue are bad solutions to survive themselves – unless they pile small CVLs high and sell them cheap, the insolvency firm would itself be bust!

It is time for some uncomfortable truth...

There is nothing in the law that says any director has to use his/her own money to personally pay for the liquidation of their company.

Let’s repeat that so it hits home…

There is nothing in the law that says any director has to use his/her own money to personally pay for the liquidation of their company.

You see the law only says you have to stop making the creditors’ position any worse.  Sometimes you can do that by simply ceasing to trade.

But there’s a problem…

You still you need closure.  You need to close down the business and the company.

The secret that many IPs would like to keep from you is that can be achieved without you throwing your own money down the drain.  Ask us how you can do that.

Opportunities 25 February 2013

Opportunities 25 February 2013

Here are this week’s opportunities.
Property – investor(s) sought 
£2m sought from one or more investors to finance the purchase of sites for residential purposes in several counties along the English/Welsh border.  Potential return of £8m.

Debt collection agency
Highly respected Birmingham based solicitors seek to buy a reputable debt collection agency anywhere in the UK.

Worcestershire accountancy practice sought
Ambitious firm of Worcestershire accountants is looking to take over the practice or buy a block of fees of a local accountant who’s looking to retire.

Leasehold premises assignment
Lease of former Black Country gym (1,900 sq ft) available.  Can be split into 3 units.

Please note…
I’m still looking to fill the distressed London properties, East Midlands manufacturer purchase, film-maker money, and builders merchant purchase opportunities referred to in my last circular – come on you guys, you must know someone out there who could fit the bill or could know someone who does?

Sorry if you’re one of the many who responded to opportunities of the solicitor looking for a successor practice and the optician looking for money – both are in talks with potential suitors – I’ll come back to you individually should things change.  Thanks for your interest.  Maybe next time?

As usual, to show any interest in any of the above, please either click here  or send an e-mail to  And please send this e-mail on to everyone on your contact list, you never know who they know…

Please add me to your safe senders’ list If you’ve not already done so.  And make sure your IT support team haven’t spammed me!

Paul Brindley
Midlands Business Recovery

‘The local insolvency practice offering real solutions’

The shame of it all…! And an apology…


There’s a lot of truth in the statement that ‘you can never really understand another’s view of life unless you’ve actually walked in their shoes’…

You see, unless you go though a tough situation yourself, unless you feel the feelings they feel, you are given the options they have, it’s very easy to make snap judgements.

Joe and Joanne Soap in the street tend to label people who go personally bankrupt as ‘failures’, they cannot imagine ‘living with the shame’, they think ‘liquidation is just another word for failure’, that ‘all pre-packs are just wrong and should be outlawed’, they revel in others’ misfortunes.

But in the real world….

… The reality is that when someone doesn’t know how they’re going to put bread on the table next week for their family, or pay the VAT bill so they can stay in business to fight another day, their attitudes and priorities change.  The change of attitude is immense, especially for those who thought ‘that’ll never be me’.

So why do I raise this right now?

Well, yet another ‘celebrity’ has pushed the ‘I’m a celebrity, get me out of here/debt’ button!  Martine McCutcheon.  OK, not the biggest star ever to have sought bankruptcy protection, but still a household name.
The problem is the thoughts of people who are on the outside of an individual’s or company’s financial problems are little more than ‘school gates tittle tattle’, noise which frankly isn’t worth listening to.  Yet when assessing their options those on the inside do consider other people’s tendencies to talk such tittle tattle.  And this can lead to delay – because it’s far easier to wait for someone else to press the dreaded button.  By then far more is lost, it can be more difficult to rebuild.

So why do so many people hold the opinions they do when there’s a huge list of famous, often revered, people from all walks of life who have gone into bankruptcy over the years?

Here are some of them: Abraham Lincoln; Al Jolson; Andy Gibb; Anna-Nicole Smith; Bill Roache; Bjorn Borg; Burt Reynolds; Buster Keaton; Chaka Kahn; Charles Goodyear; Chris Eubank; Christopher Biggins; Clarissa Wright; Colin Hendry; Cyndi Lauper; Daniel Defoe; David Irving; David Van Day; Debbie Reynolds; Don Johnson; Donald Trump; Eddie “The Eagle” Edwards; George Best; Handel; Henry Ford; Henry John Heinz; Immanuel Nobel; Isaac Hayes; Jerry Lee Lewis; Jim Davidson; John Barnes; Jonathan Aitken; Kim Basinger; Larry King; LaToya Jackson; Mark Twain; Marvin Gaye – I heard that one through the grapevine; MC Hammer; Meat Loaf; Michael Barrymore; Mick Fleetwood; Mickey Rooney; Mike Tyson; Oscar Wilde; Tammy Wynette; Thomas Jefferson; Tom Petty; Toni Braxton; Ulysses S.Grant; Walt Disney; William Fox; Willie Nelson; Wolfgang Amadeus Mozart.

Do I think of Meat Loaf’s bankruptcy when I’m playing Bat out of Hell large while driving?  If given the chance to interview one of the founding fathers, would I talk to him about his bankruptcy?  Would I refuse to do business with Donald Trump if given the chance?  To pop out for dinner with Kim Basinger?

OK, some in the list are more famous than others, some are held in much higher regard than others, nevertheless there are clear messages to be drawn:

  • Being good, even the very best, at what you do doesn’t make you immune from severe financial hardship;
  • Bankruptcy need have no lasting effect – either on what people think of a person or their future success.

You see people and businesses can rebuild from bankruptcy provided they have the right attitude, tools and opportunity.  People can change their attitude; they can seek out the right tools; they can seek out the right opportunities.  All these things are manageable with the right people around them.  Trying to somehow rebuild on their own doesn’t work, yet most try.  And looking at bankruptcy in a negative way is a downright hindrance to rebuilding.


With this in mind, I have three simple questions for you, in fact everyone out there:

  1. If you or your client is swimming against the tide right now, isn’t it just a choice?  Exactly when will you do something different, to get out of the hole you’re in – in this or your next life?
  2. Why do we as a society cling to misguided attitudes of bankruptcy?  Is it through choice or ignorance?
  3. If others can go on to great things after bankruptcy, what’s to stop you?  Really?

Just a few thoughts…

I would really appreciate your feedback, good or bad, on my ramblings.

By the way, please add me to your safe senders list.

Finally an apology, I’ve had to cancel this evening’s Cashflow Club, I’ve been called away to the Isle of Man on business.  Who says an insolvency practitioner’s life in Sedgley isn’t interesting! 

Speak soon…

Paul Brindley
Midlands Business Recovery

PS If you are in a poor financial position, or if you have a client – individual or corporate – who is, get them to contact me – the sooner the better please.

Paul is licensed by the Institute of Chartered Accountants in England & Wales to act as an insolvency practitioner in the UK

Business Resuscitation Opportunities 16 January 2013

Who do you know who may be interested in these?

Travel insurance (01/01)

Travel insurance quoting and back office mechanism with health scoring and fully SEO ready website for sale. It integrates the whole process from quotation through into your own accountancy, reporting and claim management functions, with no human input. The mechanism can support quoting in an unlimited number of domain names with a white labelling facility and multi-layer mark-up. Ideal purchaser could be a major insurance company, underwriter or broker. Offers in excess of £250k sought, with ongoing share of income in return for continuing support.

Kip’s eco-consortium! (01/02)

Kip is looking to raise money for several environmental projects including:

UK tidal energy – investors up to 60m Euros
Indian wind farm – investors up to $300m

Consortium being put together.

Band seeks funding (01/03)

Band who play major international music festivals and venues, established for 20 years and with a new line up, whose music has been used on several films and computer games, seeks £100k to fund completion of its latest album and show production. Could suit a sponsor looking to develop its own brands in the Asian markets, or just an investor.

Successor solicitor practice sought (01/04)

Retiring solicitor specialising in residential and commercial property in the Black Country and wider West Midlands seeks successor firm to take on his caseload, consultancy arrangement sought.

Digital signage (01/05)

East Mids based digital signage company seeks multi million pound backer to support the business through the procurement of large contracts with blue chip customers.

Interior fit out business (01/06)

Profitable, expanding commercial and retail interior fit out business is looking to merge or acquire similar business of about the same size -three quarters of a million turnover.

Non food retail (01/07)

An experienced venture capital company is looking to acquire distressed retailers, turnover £10m-£50m, before they go into administration. Substantial discount to net asset value expected.

Dealer offers car parts and other items for sale (01/08)

Brand new Toyota / Daihatsu parts – Market Value £0.8m, OIRO £75k
Folding canvas bags for external markets- 74,000 pieces for £12k
Internal domestic doors – 3,500 pieces for £28k
Ladies sandals and shoes – £1.25 to £2.50 per item

As usual, if you or anyone you know is interested in any of these opportunities, just e-mail me at Click here to do so.

If you don’t yet know how my Business Resuscitation Programme works, give me a call, I’ll be glad to explain it. Or if you know of a business that is struggling, why on earth wouldn’t they try finding a solution through my Business Resuscitation work?

Paul Brindley
Midlands Business Recovery

‘The local insolvency practice offering real solutions’

Business Resuscitation Opportunities 14 September 2012

Here are the latest opportunities for you.
Production manager urgently sought (09/6)
Black Country heritage business urgently seeks a good production manager with strong people management skills.

Development site for sale (09/07)
500 acre site in South Wales, 10% resi, 90% leisure/retail – price about £6m.

Hardworking workforce available – recycling (09/08)
I’ve just had to make the workforce of a Black Country based recycling company redundant on the closure of the businesss. I was really very impressed with how hard they worked – so if you need staff in a similar business, call me.

Leasehold factory (09/10)
Good quality factory available in Great Bridge, 9,000 square feet, with overhead cranage.

As normal, please drop me a line with any interest –

Paul Brindley
Midlands Business Recovery